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V. Sajeev Kumar

Kochi, June 18 The trading community in Kochi port is to oppose the general revision of tariff proposals of the port management as well as the terminal operator at the joint hearing scheduled to be convened by Tariff Authority of Major Ports (TAMP) in the port premises on Saturday.

Senior sources in the trading community told Business Line that the proposals for an overall increase of 40 per cent hike in the rates is not at all logical considering the global recession and decrease in the volume of exim trade through the port.

It would be advisable to maintain the current scale of rates and any increase in rates particularly during this period would spell disaster for the overall development of exim trade, the sources said.

Referring to the rates proposed for container-related charges, the sources pointed out that the increase in wharfage such charges at 40 per cent is a steep hike and cannot be justified. The port is severely affected by global recession and exports of entire major item through the port had shown a decline. The port handled 15.23 million tonnes cargo in 2008-09 compared with 15.75 mt in the previous year, showing a decline of 3.34 per cent.

While the containers handled in 2008-09 was 2,63,473 TEUs compared with 2,53,715 TEUs in the previous year, showing an increase of 2.66 per cent.

However, Kochi is way below in the container traffic in comparison with neighbouring ports. Moreover, the New Mangalore Port is attracting huge volumes of coffee exports previously routed through Kochi.

Likewise, Tuticorin port is handling substantial volume of raw cashew imports and exports of cashew nuts. Kochi has no longer any dominance in handling of cashew. The competition between the ports have become cut throat and at this juncture, it is not at all advisable to increase the container wharfage to 40 per cent. The sharp increase in the rates would force shippers to divert to other neighbouring ports, the sources added.

The port had earlier constituted a committee to reduce rates and the trade was directed to reduce the cost. Accordingly rates were reduced, but no reduction was made from the side of the port.

Instead the port gave a proposal to increase rates by 40 per cent, which was approved by TAMP in February 2007. Close on the heels, the port management has now come up with another increase of 40 per cent which literally means an overall increase of 80 per cent in a span of four years.

Welcoming the discontinuation of ad valorem wharfage rate and reduction in demurrage charges of import and salvaged goods and export and transhipment goods, the trading community said these are essential in the present scenario to attract more cargo through the port.

The port needs to earn more once the ICTT at Vallarpadam starts operations this year. The concession for transhipment cargo is also vital for the successful operations of ICTT, the sources added.

More Stories on : Shipping/Ports | Kerala

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